FXStreet notes that the S&P 500 Index pushed slightly higher on Monday but maintains a bearish “reversal day” and the Credit Suisse analyst team also now sees the potential for a ‘head and shoulders’ top if the S&P 500 Energy Industry Group break below 260.84/259.49 which would imply a deeper correction.

“Key near-term support is seen at its 13-day average at 3215, with a break below 3200/3198 then needed to confirm the aforementioned top. This would then open the door to a swing lower within the broader sideways range with support seen next at 3173, ahead of 3154 and then more importantly 3116.” 

“Resistance is seen at 3240/41, with a move above 3248 needed to ease the topping threat and see a move back to 3266. Above 3279/81 though is needed to reassert an upward bias again, with the top of the February gap seen at 3328/38.”

“S&P 500 Energy Industry Group is likely to be a good barometer for the broader market over the next few sessions, as a break below 260.84/259.49 would complete a large ‘head and shoulders’ top to suggest a deeper setback, with next supports then seen at 235.089 initially, then 208.23. In contrast, a break above 292.19/32 would actually set a small base to turn the risks higher within the range, with next resistance then seen at 314.01 initially.”